Xponential Fitness, Inc. Acquires Tenth Brand, Body Fit Training, to Deliver Functional Training & Strength-Based Programs
October 13 2021 - 9:00AM
Business Wire
- Acquires Australia-based fitness franchisor
with nearly 130 open locations across four countries and over 150
additional locations obligated to be opened within the next 12
months
- Brings total number of Xponential
international studios currently open or obligated to open to over
1,000 studios
Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential” or “the
Company”), a curator of leading boutique fitness brands, announced
that effective today it has acquired Body Fit Training (“BFT”), an
Australia-based fitness franchisor for a total of $44 million in a
combination of cash on the balance sheet and debt from its existing
senior secured loan facility. The acquisition is anticipated to be
immediately accretive on an EBITDA margin basis. In connection with
the transaction, Xponential acquired all of the intellectual
property of BFT. Upon close, Xponential is also expected to enter
into a Master Franchise Agreement with the BFT founders to provide
support to all of its nearly 130 franchised studios across
Australia, New Zealand, and Singapore, as well as an additional
over 150 BFT studios previously sold and contractually obligated to
open across the Asia Pacific region within the next 12 months.
Xponential will also be directly servicing BFT studios in the
United States and Canada.
Founded in 2017 in Melbourne, Australia, BFT offers
community-based 50-minute functional, high-energy strength, cardio,
and conditioning-based classes across 13 workout programs, each
designed to achieve the unique health goals of its members. BFT
uses scientifically proven training techniques aimed at reducing
fat and creating lean muscle through a variety of training sessions
overseen by highly accredited coaches in a dynamic group
environment. In 2020, BFT received the APAC (Asia-Pacific)
Franchise of the Year Award, recognizing its continued strong
growth during 2020 despite national lockdowns.
“We are thrilled to announce the addition of our tenth brand
with our acquisition of BFT,” said Anthony Geisler, Chief Executive
Officer of Xponential Fitness, Inc. “Xponential has a proven
history of seamlessly integrating brands into our platform. BFT
expands our portfolio of boutique fitness offerings in a way that
is highly complementary to our existing modalities. As with each of
our current brands, we will leverage the Xponential Playbook to
provide BFT robust franchisee support and access to best practices
to generate synergies across our entire portfolio. We see
significant opportunities to expand BFT’s existing studio base both
in the U.S. and internationally and look forward to the brand’s
continued success.”
“I, together with our Joint-CEO Richard Burnet, am excited for
BFT to join the Xponential Fitness portfolio of leading brands,”
said Cameron Falloon, Founder and Joint Chief Executive Officer of
BFT. “Xponential is a premier fitness franchisor and the perfect
partner to expand the BFT experience across the globe. We are
confident that our members and franchisees will benefit from
Xponential’s industry expertise and best-in-class platform.”
Following this most recent transaction, along with Rumble’s
brand expansion in Australia, and the Company’s global presence
across its other brands, Xponential Fitness now has over 1,000
international studios open or obligated to open in 10 countries
outside of North America.
For more information on the transaction, please review the
Company’s most recent filings with the Securities and Exchange
Commission on Form 8-K, which is expected to be filed after close
of market today. Additional details will also be discussed on the
Company’s third quarter 2021 earnings conference call in November,
the date for which will be announced in the coming weeks.
Financial Advisors
Jefferies LLC acted as a financial advisor to Xponential Fitness
in the acquisition of BFT.
About Xponential Fitness, Inc.
Founded in 2017 and headquartered in Irvine, California,
Xponential Fitness, Inc. (NYSE: XPOF) is a curator of leading
boutique fitness brands across multiple verticals. Through its
mission to make boutique fitness accessible to everyone, the
Company has built and curated a diversified platform of ten
boutique fitness brands spanning across verticals including
Pilates, indoor cycling, barre, stretching, rowing, dancing,
boxing, running, functional training and yoga. In partnership with
its franchisees, Xponential Fitness offers energetic, accessible,
and personalized workout experiences led by highly-qualified
instructors in studio locations across the 48 U.S. states and
Canada, and through master franchise or international expansion
agreements in 10 additional countries as of October 13, 2021.
Xponential Fitness' portfolio of brands includes Club Pilates, the
nation's largest Pilates brand; CycleBar, the nation's largest
indoor cycling brand; StretchLab, a concept offering one-on-one and
group stretching services; Row House, a high-energy, low-impact
indoor rowing workout; AKT, a dance-based cardio workout combining
toning, interval and circuit training; YogaSix, the largest
franchised yoga brand; Pure Barre, a total body workout that uses
the ballet barre to perform small isometric movements; STRIDE, a
treadmill-based cardio and strength training concept; Rumble, a
boxing-inspired full-body workout; and Body Fit Training, a
functional training and strength-based program. For more
information, please visit the Company’s website at
xponential.com.
About Body Fit Training
Founded in 2017 by fitness industry veteran Cameron Falloon,
Body Fit Training (“BFT”) is a fitness franchisor offering a
community-based functional training and strength-based program
through its locations in Australia, New Zealand, Singapore and the
United States. Using science and technology to drive positive
outcomes for people at all fitness levels, BFT offers 50-minute
sessions across its 13 workout programs to help reduce fat and
create lean muscle. By combining cardio with genuine resistance
programs, members benefit from training a different energy system
every day, training different muscle types, and not overloading on
the same movement patterns day-in and day-out.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management's judgment, beliefs,
current trends, and anticipated financial performance. These
forward-looking statements include, without limitation, statements
relating to Xponential’s acquisition of BFT; the expected business
and financial benefits resulting from the acquisition; and the
number of BFT studios that may be opened under the master franchise
agreement. Forward-looking statements involve risks and
uncertainties that may cause actual results to differ materially
from those contained in the forward-looking statements. These
factors include, but are not limited to, the impact of COVID-19
pandemic on our business and franchisees; difficulties and
challenges in opening studios by franchisees; the ability of
franchisees to generate sufficient revenues; risks relating to
expansion into international market; and loss or reputation and
brand awareness; and other risks as described in the filings of
Xponential with the Securities and Exchange Commission, including
the Quarterly Report on Form 10-Q. Other unknown or unpredictable
factors or underlying assumptions subsequently proving to be
incorrect could cause actual results to differ materially from
those in the forward-looking statements. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance, or achievements. You should not place undue reliance
on these forward-looking statements. All information provided in
this press release is as of today's date, unless otherwise stated,
and Xponential undertakes no duty to update such information,
except as required under applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20211013005470/en/
Kimberly Esterkin Addo Investor Relations
investor@xponential.com (310) 829-5400
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